An agreement in November between China and the Association of Southeast Asian Nations to form a free-trade area within 10 years was a wakeup call for Japan to reshape its policy regarding Southeast Asia.
During his tour of five ASEAN nations that began Wednesday, Prime Minister Junichiro Koizumi unveiled his far-reaching but somewhat fuzzy initiative to deepen economic ties with ASEAN.
The project, which also envisions signing pacts on investment, services, education, tourism, and science and technology, is intended to downplay speculation that Japan is losing influence in the region to its giant neighbor.
Koizumi also hopes the initiative will eventually bring together Japan and ASEAN as well as China, South Korea, Australia and New Zealand.